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AcreTrader 101

February 26, 2019

Why U.S. Farmland is the Best in the World

There is a reason the United States is referred to as "The Breadbasket of the World." Beyond having incredible amounts of farmland, the climate and soil qualities of the U.S. produce staggering yields of row crops like soybeans and corn. As a result, the production amount of these crops is significantly higher than any other country in the world.

This large amount of production is one of the major reasons U.S. farmland has performed so well as an investment. The two largest drivers of this agricultural output are 1) the amount of land in the United States and 2) the growing conditions.

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The United States has Over 900 Million Acres of Farmland

The average U.S. home sits on a lot that is 0.2 acres. A football field is 1.1 acres. An average U.S. farm is 440 acres. In this context, 900 million acres of farmland is a LOT!

Much of this farmland is pastureland, permanent crops (vineyards, almond trees, etc.) or land for lower value production. However, over 250 million acres are used for row crop (corn, soy, wheat, cotton, etc.) production alone.

Said differently, U.S. land used just for row crop production is roughly the size of the entire landmass of France and Germany combined. United States farmland area compared to Europe

U.S. Growing Conditions are Ideal

The massive amount of U.S. farmland has a distinct advantage: it sits in a "Goldilocks Zone" for climate. Not too hot, not too cold. A spring season ideal for planting with plenty of rain, followed by a seasonally hot summer, make for perfect growing conditions. world-temperature-zones-agriculture.png In addition to great weather, soil quality of U.S. farms is often very good. For example, large parts of the Midwest and Mississippi Delta have soils left behind from glaciers, swamps, and decay, creating a deep base of soil that is rich in nutrients and organic matter.

As a result of ideal growing conditions, plus the deft application of newer farming technologies, U.S. farmland is highly productive on a per-acre basis versus the rest of the world. global-course-grain-yield-comparison.png

Conclusion

The U.S. helps to feed the world due to several distinct factors:

  • The Midwest alone is the largest contiguous landmass of productive farm ground in the world
  • Advanced applications of farming technologies aid crop yield
  • A temperate climate coupled with high-quality soil help each acre act as some of the most productive in the world

For these reasons and many more, we believe U.S. farmland is some of the best in the world. We love to talk about it, and we love to invest in it! To add U.S. farmland to your investment portfolio, please see our current offerings.

Note: The information above is not intended as investment advice. Data referenced herein is sourced from USDA, CIA Factbook, Meteoblue, and The UK Meteorological Office, with additional calculations and analysis performed by AcreTrader. Past performance is no guarantee of future results. For additional risk disclosures regarding farmland investing and the risks of investing on AcreTrader, please see individual farm offering pages as well as our terms and conditions.